Serco has agreed to pay the Government £68.5 million after it emerged the private security firm and rival G4S overcharged for tagging offenders, some of whom were found to be dead, back in prison or overseas.

G4S said it will give credit notes worth £24.1 million to the Government after an independent review found the security firm had overcharged for its electronic tagging contracts.

G4S said it has apologised to the Government. Credit: PA Wire

The firm said the review of the contract showed that its justice division had "wrongly considered itself to be contractually entitled" to bill the Government, but stressed there was no evidence of dishonesty or criminal conduct.